2. USSR: NO BOLD MOVE AFOOT TO ACQUIRE ADDITIONAL TOLL ENRICHMENT CONTRACTS (DE

Created: 7/12/1988

OCR scan of the original document, errors are possible

UTILITIES THROUGHOUT THE UNITED STATES. EUROPE, AND THE "AR EAST HAVE NOT CONTRACTED FOR ALL THEIR ENRICHED FUEL 3EHANDS FOR THE. THE DEMAND THAT IS NOT CONTRACTED JILL INCREASE FROM ABOUT 1 MILLION SWUS IN0 TO NEARLY ILLION SWUS BY ALTHOUGH THE UNCONTRACTED DEMAND GREAT IN THE , ENRICHMENT PLANT CAPACITY IS iXPECTED TO EXCEED TOTAL DEMAND BY 20 TO ERCENT INS. THE MARKET HILL UYERS' MARKET IN THEHERE THE UTILITIES WILL BE SEEKING THE MOST COMPETITIVE 'ERMS. THE UTILITIES WILL NOT BE EAGER TO MAKE COMMITMENTS ODAY THAT WOULD FORECLOSE FUTURE COMPETITION.

THE FISCAL YEAR 7 DEPARTMENT OF ENERGY PRICE WAS DOLLARS PER SUU. COGEMA, FRANCE'S EUROTIF GASEOUS DIFFUSION PLANT, CHARGEDOLLARS PER SUU IN7 FOR ONE CONTRACT. URENCO. THE DUTCH, GERMAN, AND ENGLISH GAS CENTRIFUGE FACILITY AT ALMS LO, NETHERLANDS NEGOTIATES IHE PRICE FOR EACH CONTRACT, WHICH GENERALLY HAS BEEN ABOUT DOLIARS PER SMU. ENRICHMENT COSTS FROM THESE FACILITIES ARE PROJECTED TO BE LONER IN THE . NEW ENRICHMENT TECHNOLOGIES, HOST NOTABLY THE LASER ISOTOPE SEPARATION PROCESS, SHOULD SIGNIFICANTLY REDUCE ENRICHMENT COSTS. THE PROJECTED COSTS OF THESE TECHNOLOGIES RANGE FROMOLLARS TO OLLARS PER SWU.

IF THE SOVIETS ARE TO SE SUCCESSFUL IN EXPANDING THEIR SHARE OF THE MARKET (CURRENTLY FOUR TO SIX PERCENT), THEY MUST (A) REMAIN VERY KNOWLEDGEABLE OF THE COMPETITION'S INTENTIONS FOR IMPLEMENTING ADVANCED ENRICHMENT TECHNOLOGY AND THE ECONOMICS OF THAT TECHNOLOGY; AND, (B) MUST OFFER PRICES SUFFICIENTLY LOU TO MAKE THE RISK OF ONG-TERM CONTRACT ACCEPTABLE.

Original document.

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